- Central banks have intentionally inflated asset prices that benefit those who own assets, while wages and real prices have remained equal.
- There’s no case for being a saver. The risks are too high for miserable returns.
- I’ll discuss three options to protect yourself and take advantage of the next quantitative easing rounds.
In the last 10 years, the financial environment has changed significantly. You might not see it in your everyday life, but the 2007 environment and the environment today are hugely different. The wealth effect hasn’t really worked as Central Banks had planned and has significantly skewed asset values compared to fundamentals.
In today’s article, I’ll describe what happened, compare it to what the previous situation was, show who benefited from the significant monetary policy market intrusions, and who will keep benefiting in the future to find ways to take advantage of the situation. More →